Zomato Q2 Result: Stock ends 10% higher after ₹36 crore profit; Market cap back above ₹1 lakh crore

The company's Gross Order Value (GOV) across its B2C businesses grew by 13% sequentially to ₹11,422 crore. Food delivery GOV also grew by 9% from the June quarter and by 20% from last year. Nearly all the growth in the GOV was led by a growth in the company's order volumes.

"Food delivery GOV is recovering well from the demand slowdown we witnessed during the last two quarters of FY23," Zomato said in its shareholder letter.

Zomato's Quick Commerce business also saw a 29% sequential growth in its GOV following a tepid June quarter due to temporary business disruptions.

The company in its previous shareholder letter had guided for its Adjusted Revenue to compound at a 40% growth rate over the next couple of years. "We remain on track to deliver that outlook," the shareholder letter said.

However, Zomato expects the December quarter demand uptick to be limited despite some additional order volumes due to the Cricket World Cup. "A lot of Indians observe fasts during the Navratri festival and Shradh period. We think the demand uptick would be limited to a handful of match days and hence not very significant," the company said in the letter.

Zomato's "Gold" program has now scaled to 3.8 million members within three quarters of launching, the company said. "These numbers now account for nearly 40% of our food delivery GOV," the company said. Member addition to the Gold program nearly doubled from the June quarter.

Shares of Zomato ended 9.7% higher at ₹117.65. The stock is back above the market capitalisation of ₹1 lakh crore. This is the first time that the stock has crossed that level since January 2022.